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When interest rates are high, consumers have a greater incentive to ______ more, but when interest rates are low, consumer have a greater incentive to ______. M a. buy; sell b. borrow; save c. sell; buy
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21 votes
When interest rates are high, consumers have a greater incentive to ______ more, but when interest rates are low, consumer have a greater incentive to ______. M

a. buy; sell
b. borrow; save
c. sell; buy
d. save; borrow

User Grego
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1 Answer

23 votes
23 votes

When interest rates are high, then the consumers have a greater incentive to save more, but when interest rates are low, consumer have a greater incentive to borrow more.

What is Interest Rate?

This refers to the charge which is given for a particular loan which is replayed after a certain time.

With this in mind, high interest rates are not appealing to customers so they rather save and then borrow when the interest rates are low.

Read more about interest rates here:

User Madacol
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